No one is supposed to ring a bell when a market has reached a top or a bottom, but as Jeff Matthews points out the Time Magazine cover of June 13, 2005 was a pretty good indicator of a market top, especially in a few cities like Boston. Time said:
Ah, the blistering real estate market, where dreams of big bucks come wrapped in aluminum siding, and you can get a three-bedroom ranch house with your hair extensions and a mortgage with your Grilled Stuft Burrito. The stock market may be dragging, but home prices are soaring, fueling a national obsession with real estate. Your house is now your piggy bank, ATM and 401(k). House gawking is a hobby; remodeling, both entertainment and an investment. Folks brag about having bought their home in the '90s the way they used to brag about having bought Microsoft in the '80s. Even if you're not contemplating buying or selling anytime soon, the amazing lift in home values is changing the way we think about the roofs over our heads. Real estate isn't so much about nesting today as it is about nest feathering.
The house has always reflected its occupants' place in society. But now it also determines their place in society. The boom has divided haves from have-nots-- owners from renters, hot markets from cold . . .
For those of you having trouble following the color codes, from top to bottom on the rightmost part of the chart, the list of cities is as follows: Los Angeles, Miami, Washington D.C., San Diego, Las Vegas, Tampa, Phoenix, San Francisco, New York, Seattle, Portland, Boston, Chicago, Minneapolis, Denver Atlanta, Charlotte, Dallas, Cleveland, Detroit
Jeff Matthews Is Not Making This Up:
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